Scotland's farmers and landowners are feeling more optimistic than last year, but need to do more to prepare for their retirement and hand over the reins, according to a new report.

In its survey of 234 agricultural businesses, accountancy firm Johnston Carmichael found 46 per cent of farm businesses felt positive about the future, compared with 35 per cent of respondents last year.

But more than half of those questioned – 51 per cent - admitted they did not have succession plans in place for their businesses - despite almost 60 per cent of respondents being over 50 years old.

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“It’s great to see that optimism is on the rise amongst farmers," said Robin Dandie, partner and head of agriculture at Johnston Carmichael. "Selling prices are currently better across livestock and cereals following a shortage of cattle for processing and as Scotland’s distillers go from strength to strength.

“What is less encouraging is that just over half of respondents admitted they don't have succession plans in place. Given the ageing demographic of business owners, this is a worryingly high percentage, especially as the industry continues to face uncertainty. Succession planning is a vital component for any business strategy and this includes agricultural businesses."

Just over a third – 37 per cent - of respondents said they planned to fund their retirement by taking money out of the business. Dandie said this was a concern, adding: "They need to be sure that their businesses can afford to cover this cost.”

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Robert Chapman, managing director of Aberdeenshire-based egg producers Farmlay, said the sector was inclined to do itself down, but needed to be upbeat and positive if we are to attract more young people into farming and address the ageing demographic.

“Farming is a great job," he said. "There is more money to be made in other industries, but the lifestyle offered by farming can’t be beaten. There is also more of a career path now for new entrants.”

On Brexit, a significant minority – 38 per cent - questioned for the 2018 survey said they were uncertain about the future amid the changing landscape prompted by Brexit.

But those highlighting Brexit as a specific concern fell to 17 per cent from 25 per cent the previous year.

“There's no doubt that the current better selling prices have cheered the industry, but currency fluctuations and access to markets remain uncertain amid the changing landscape," Dandie added.